Evolent Health Q3 revenue and profit beat on client expansion, oncology growth

Overview

• US healthcare solutions provider's Q3 revenue rose sharply, slightly beating analyst expectations

• Adjusted EPS for Q3 beat analyst expectations

• Company reiterated full-year revenue guidance and raised adjusted EBITDA outlook

Outlook

• Evolent reiterates 2026 revenue guidance of $2.6 bln to $2.7 bln

• Company raises 2026 Adjusted EBITDA guidance to $130 mln to $135 mln

• Evolent expects to deploy $26 mln to $28 mln in capital expenditures in 2026

Result Drivers

• CLIENT EXPANSION - Co cited renewals and expanded agreements with existing health plan customers as key drivers of Q3 growth

• ONCOLOGY SOLUTIONS - Execution in 2026 oncology launches contributed to results

• NEW CONTRACTS - Co announced one renewal and two new revenue agreements in Q3, including expanded oncology services and surgical management contract renewal

Company press release:

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the advanced medical equipment & technology peer group is "buy"

• Wall Street's median 12-month price target for Evolent Health, Inc. is $6.00, about 25% above its November 4 closing price of $4.80

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 11 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)